WASHINGTON (Dow Jones/AP) — A federal regulator filed 185 administrative court claims this week against former Freddie Mac chairman and chief executive officer Leland Brendsel stemming from the company's accounting scandal.
The Office of Federal Housing Enterprise Oversight, Freddie Mac's chief federal regulator, could call Freddie Mac Chairman and CEO Richard Syron to testify against Brendsel. The administrative court case begins Monday but will likely last weeks, and both sides are bracing for a contentious public battle.
Brendsel led the government-sponsored enterprise from 1989 until 2003, when he was forced to resign in the wake of the company's four-year accounting lapse.
Mismanaged accounting at Freddie Mac forced the company to restate $5 billion in earnings, pay $125 million in federal fines, and pay another $400 million to settle a class action.